How does a credit card actually work?

• When you pay with your credit card, the amount is not taken from your current account straight away.
• If you have enough spending limit available, your payment is approved and you will see the amount on your credit card statement.
• Your credit card bill is automatically debited from your current account every month.
• For a reservation, such as a hotel deposit, an amount is temporarily held. It has not yet been debited.
• Many purchases made with your credit card come with extra peace of mind, such as purchase protection insurance or delivery guarantee.

The main difference is when the amount is debited. If you pay with your debit card, the amount is taken directly from your current account. If you pay with your credit card, the payment first appears on your credit card statement. Your credit card bill is then automatically debited from your current account every month.

You have 21 days to repay the outstanding balance after receiving your ABN AMRO Credit Card statement. If you pay within this period, you do not pay any interest. Your credit card bill is automatically debited from your current account every month. You can make extra repayments or check your balance in the ABN AMRO app whenever you want.

Example 1: you buy a suitcase online

Imagine you buy a suitcase online for your holiday. You enter your card details and CVV code and confirm the payment in the ABN AMRO Credit Card app. Our credit card partner ICS checks whether the payment fits within your spending limit: the amount you can spend with your credit card. If everything is in order, the shop is paid and you will see the payment for the suitcase on your credit card statement or in the app. Your credit card bill is automatically debited from your current account every month.

What if your suitcase is not delivered?
You can use the delivery guarantee and request compensation. Check the terms and conditions to see when you are eligible.

What if your suitcase arrives damaged, is lost or gets stolen?
With your credit card, almost all purchases are insured against damage, loss or theft for 180 days. The cover that applies and the amount you may be reimbursed depend on your credit card and the terms and conditions.

Want to know more about the protection that comes with credit cards? Discover all credit card insurance options.

Example 2: your hotel reserves a deposit

You check in at a hotel. The hotel asks for your credit card to temporarily reserve a deposit, for example for the minibar, parking, room service or damage. ICS checks whether there is enough spending limit available. An amount is then reserved within your spending limit. It is not taken from your current account straight away, but it does count towards what you can still spend with your credit card.

Your current account balance remains available. The deposit is temporarily held on your credit card, while the hotel has security for any costs afterwards. If you do not use the deposit, the reserved amount is usually released automatically. If the hotel does charge costs, the amount may still be processed as a payment.

You mainly use a credit card in situations where you want extra peace of mind. For example when travelling, shopping online, making reservations or paying unexpected costs. 

Think of the following:

• you place an online order. Delivery guarantee or purchase protection insurance can be useful. 
• an amount needs to be reserved temporarily. Think of a hotel, car rental or deposit.
• you pay abroad. Credit cards are accepted worldwide. 

In short, a credit card is especially useful when you need extra peace of mind, worldwide acceptance or temporary spending flexibility. 

Travelling soon? You can also read more about the benefits of using a credit card when travelling abroad.

CVV code: The three-digit security code on your credit card. You often use this code as an extra check when paying online.

Spending limit: The maximum amount you can spend with your credit card.

Available spending limit: The amount you can still spend with your credit card at that moment. Payments and temporary reservations reduce this amount. You can transfer money to your ABN AMRO Credit Card so that you can spend more with your card temporarily, without actually changing your spending limit.

Reservation: An amount that is temporarily held, for example for a hotel deposit or car rental. The amount has not yet been debited, but it does count towards your available spending limit.

Card fee: The amount you pay (annually) for using your credit card. 

Outstanding balance: The amount you have already paid with your credit card and still need to repay.

Mastercard ID Check: An extra security check for Mastercard payments that lets you confirm online payments. This shows that you are the person making the payment.